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At press time, corrections were the standard around the altcoin industry, with the Bitcoin-caused deflation case having a major impact on the success of cryptos such as Ethereum, Chainlink, and Nano.
Ethereum, the world’s largest altcoin, has dominated the altseason in recent months, thanks to an explosive rise in the rankings. Indeed, with ETH recently breaking the $4,000 mark, there has been speculation that the altcoin could soon outperform Bitcoin. However, at the time of publishing, ETH was following BTC’s lead and correcting its valuation.
In reality, after a 30% increase in less than 5 days, ETH dropped by nearly 10% in less than 24 hours. It’s worth recalling that the altcoin’s corrections were long overdue. As a result, its recent weakening does not actually indicate a pattern turnaround.
While the dotted markers on the Parabolic SAR were mostly below the price candles, the Relative Strength Index dropped sharply after a long period in the overbought sector.
Despite the corrections, a number of factors continue to influence Ethereum’s results.
In comparison to the other altcoins discussed in this report, NANO was ranked 84th on CoinMarketCap’s charts at the time of publication. It is, however, in the news today after rising by more than 60% in three days, driving the alt far above the $13 mark. It is worth remembering, though, that NANO is still a long way from its all-time high, which it last reached more than three years ago.
The size of the incoming bullishness was reflected by the cryptocurrency’s indicators, as the Chaikin Money Flow noted a sharp jump and heading for zero, while the Awesome Oscillator depicted an increase in market traction.
The month of May came at a good time for Chainlink, the altcoin placed 13th on CoinMarketCap’s charts. Following steady growth in March and April, the alt increased dramatically in May, with Connection increasing by more than 24 percent in 5 days. However, thanks to Bitcoin, this was not to last, with the altcoin losing more than 20% of its worth in less than 48 hours. Chainlink’s market success was hampered by Ethereum’s own price corrections.
While the Bollinger Bands’ mouths were fairly divergent, indicating market uncertainty, the MACD line fell over the Signal line after a bearish convergence on the maps.
LINK, after recent corrections, remains one of the most common altcoins in the top-25, according to many, due to a variety of other factors at work.